Examining Information Systems Outsourcing: A Case Study from the United Kingdom

Abstract

This paper examines the issue of outsourcing information services (IS) through the framework of case study-based, grounded research, located in a major UK company. The impact of outsourcing drivers including efficiency, IS alignment and the human resource dimension are explored and balanced against the perceived outsourcing risks. It is also postulated that although managers claim rational economic benefits, when making outsourcing decisions, they may, in fact, be bounded in their rationality by their perception of the quality experienced as users of IS/IT. Hence, it is suggested that the real justification for outsourcing may be that it provides a definitive, albeit drastic, vehicle for change.